FATE AWAITS

SAN FRANCISCO, May 2, 2012 /PRNewswire/ — Yelp Inc. (YELP), the company that connects consumers with great local businesses, today announced financial results for the first quarter ended March 31, 2012.

 

• Revenue was $27.4 million in the first quarter of 2012, reflecting 66% growth in revenue from the first quarter 2011
• Cumulative reviews grew 59% to 27.6 million
• Average monthly unique visitors grew 53% to 71.4 million*
• Active local business accounts grew 117% to 27,300

Net loss in the first quarter of 2012 was $(9.8) million or $(0.31) per share, compared to a net loss of $(2.8) million, or $(0.19) per share, in the first quarter of 2011. Adjusted EBITDA for the first quarter of 2012 was a loss of approximately $1 million, compared to a loss of $880,000 for the first quarter of 2011.

“We are very pleased to report our first quarter as a public company,” said Jeremy Stoppelman, Yelp’s chief executive officer. “We were particularly excited to launch 11 new Yelp markets in the first quarter, including Sydney and Stockholm. With more than 80 Yelp cities around the world today, consumers are yelping about their favorite local businesses in record numbers and we look forward to continue expanding our platform around the globe.”

“Our initial public offering added $114 million to our balance sheet, adding strength to our financial foundation as we look to continue investing in our rapid growth and increase the value we deliver to our communities and local businesses,” added Rob Krolik, Yelp’s chief financial officer.  “The number of active business accounts has more than doubled year over year, and we have seen engagement from local business owners increase proportionally as they realize the positive economic impact that results when business owners have a constructive dialogue with their customers.”

Business Highlights

• New market expansion: Yelp launched 11 new markets in the first quarter, including Antwerp, Brussels, Oklahoma City, Perth and Hampton Beach, increasing the total active markets worldwide to 82.
• Yelp Mobile:  Our mobile apps were used on approximately 6.3 million unique mobile devices on a monthly average basis for the quarter. Our development team released a total of nine updates for Yelp’s iPhone and Android apps in the first quarter. Enhancements to the user experience included new features such as the release of photo feedback, new search filters (filter by what’s hot/new and by businesses with deals) and the ability to view business owner replies.
• Distribution partnerships: Mercedes and Lexus integrated Yelp into their in-vehicle infotainment systems. Combined with Yelp’s BMW partnership announced in December, these relationships underscore the value that Yelp content provides to consumers on the go. OEMs are now working quickly to ensure that Yelp reviews are within reach from the dashboard.
• Yelp for Business Owners: Yelp introduced a new set of dashboard metrics to make Yelp’s business owner accounts even more insightful. The most notable improvement is the integration of mobile metrics which enables a business owner to track how many people placed a call to a business, mapped directions, purchased a Yelp Deal and/or uploaded photos.
• Yelp Deals: Yelp Deals continues to grow. More than 25,000 businesses offered deals to their local community in the first quarter.

Business Outlook

As of today, Yelp is initiating guidance for its second quarter of 2012 and full year 2012 revenue and adjusted EBITDA guidance.

• For the second quarter of 2012, revenue is expected to be in the range of $29 million to $31 million. Adjusted EBITDA is expected to be a loss in the range of $(500,000) to $(800,000).
• For the full year of 2012, revenue is expected to be in the range of $128 to $132 million, representing growth of 54% to 58% compared to the full year of 2011. Adjusted EBITDA is expected to be breakeven to slightly positive

UPDATE: Yelp misses by $0.01, beats on revs; guides Q2 revs in-line; guides FY12 revs above consensus (22.99 +0.39)
Reports Q1 (Mar) loss of $0.31 per share, $0.01 worse than the Capital IQ Consensus Estimate of ($0.30); revenues rose 66.1% year/year to $27.4 mln vs the $25.41 mln consensus. Cumulative reviews grew 59% year/year to 27.6 mln, average monthly unique visitors were up 53% to 71.4 mln, and active local business accounts grew 117% to 27,300. Co issues in-line guidance for Q2, sees Q2 revs of $29-31 mln vs. $29.07 mln Capital IQ Consensus Estimate, and expects adjusted EBITDA to be ($500)-($800)K. Co issues upside guidance for FY12, sees FY12 revs of $128-132 mln vs. $124.77 mln Capital IQ Consensus Estimate. Adjusted EBITDA is expected to be breakeven to slightly positive.

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